A Case Study On The Bond Defaults Of Anhui Shengyun Environment-Protection Group

In recent years,as an important part of China's financial market,bond market has developed rapidly,the scale of bond market has far exceeded that of stock market,the scale of bond issuance and transaction has been increasing,and the types of bond transaction are increasingly rich,which provides an important channel for Chinese enterprises to carry out direct financing.However,influenced by the changes of macro-economic environment at home and abroad,since the default of "11 super day bond" broke the rigid payment of bond default in 2014,bond default occurred frequently in the bond market of China,the number and amount of bond defaults increased constantly,the subject of defaults also increased day by day,and bond default has become a normalization in China.In 2018,130 bonds of 46 issuers in China's bond market defaulted,involving a default amount of 124.3 billion yuan,a year-on-year increase of 219%.China's bond default entered a high-risk period,and the accumulated credit risk was largely released.The emergence of bond default is a manifestation of the growing maturity of China's bond market.However,if the bond default is handled improperly,it will not only have a negative impact on the ability of enterprises to continue to operate,but also cause investors to lose confidence in the bond market and hit investors' willingness to invest.Compared with non listed companies,bond default of listed companies has a greater impact on the market.In 2018,there were 15 listed companies in China that had bond default,including 3environmental protection companies.Under the background that the state attaches great importance to environmental protection issues,more and more capital and enterprises will enter the industry in the future,in-depth study on the causes of bond defaults of environmental protection companies and risk prevention measures are particularly important.Anhui Shengyun Environment-Protection Group,as a private listed company mainly engaged in solid waste treatment,used to be a star enterprise on the growth enterprise board.In May 2018,its debts were overdue.InOctober and December 2018,a total of three bonds issued by Anhui Shengyun Environment-Protection Group Co.,Ltd.were in material breach successively,with a default amount of 1.231 billion yuan,which had a great impact.There are many reasons for bond defaults of Anhui Shengyun Environment-Protection Group,and it has certain representativeness in environmental protection enterprises.Therefore,this paper chooses Anhui Shengyun Environment-Protection Group as the research object.In this paper,literature research,case analysis and comparative analysis are used to study the case.Firstly,the author combs the relevant theories of bond default,then introduces the basic situation of Anhui Shengyun Environment-Protection Group and its bond defaults event,and then analyzes the internal and external causes of the bond defaults.It is found that the bond defaults of Anhui Shengyun Environment-Protection Group is mainly caused by too radical business strategy and poor business management.The tightening of external financing environment and insufficient external supervision are also part of the reasons.Finally,based on the reasons of Anhui Shengyun Environment-Protection Group's bond defaults and the characteristics of environmental protection enterprises,the paper puts forward enlightenment of bond defaults,including improving the enterprise's business strategy ability,improving the enterprise's business management level,properly using national policies and strengthening the bond market supervision.